Balance sheets are often referred to as statement of financial position which reflects the current financial position of a business. The balance sheet states current value of current and non current assets. Current and non current liabilities are also disclosed. It is possible to determine the equity of the company by subtracting liabilities from assets.
Unlike an income statement, which represents a point in time, a balance sheet represents the impact of all transactions throughout time. Each line represents an account and its current balance.
